Yes, you can have auto insurance without collision coverage
Collision coverage is optional in most states, meaning a driver can purchase liability, comprehensive, and other optional coverages while leaving out collision. The decision hinges on vehicle value, financial risk tolerance, and state requirements.
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What collision coverage actually does
Collision insurance pays for repairs to your own car after a crash with another vehicle or object, regardless of who is at fault. It typically involves a deductible and is priced based on the car's make, model, and year.
When skipping collision makes sense
If your car's market value is low, the cost of a collision deductible plus premiums may exceed the potential payout after an accident. For older vehicles, owners often choose to rely on savings or a personal loan for repairs instead of paying for a coverage that rarely pays out.
Drivers who maintain a robust emergency fund may also forgo collision, accepting the risk that they will cover repair costs themselves. This approach reduces monthly premium bills and can free up cash for other financial goals.
Alternatives to collision protection
Even without collision, you can still protect yourself against many risks:
- Liability insurance – required by law, covers damage you cause to others.
- Comprehensive coverage – handles non‑collision events like theft, fire, or natural disasters.
- Uninsured/underinsured motorist coverage – pays for injuries and damages when the other driver lacks sufficient insurance.
Cost comparison
| Coverage Type | Typical Cost | What It Pays |
|---|---|---|
| Liability only | Low | Third‑party bodily injury and property damage |
| Liability + Comprehensive | Moderate | Third‑party plus non‑collision losses |
| Full coverage (Liability, Comprehensive, Collision) | Higher | All of the above plus your own vehicle damage |
State regulations and loan requirements
While most states do not mandate collision, lenders often require full coverage until the loan is paid off. If you own your car outright, you have full discretion over the coverages you keep.
In summary, you can legally carry auto insurance without collision coverage, but you should weigh vehicle value, personal finances, and any lender stipulations before deciding.